The Telecom Regulatory Authority of India (TRAI) on Wednesday recommended setting up of nationwide network of optical fibre cables (OFC) to increase broadband penetration in the country. Broad penetration currently stands at a meagre 0.8%.
Broadband penetration is 0.8% against the tele-density of 61.0% as of September, 2010. The number of broadband connections is only 10.3 million against the targeted 20 million by December 2010.
“A National Optical Fibre Agency (NOFA) will be set up to establish this broadband network. NOFA is proposed to be a 100% central government-owned holding company. NOFA will also establish networks in all 63 cities covered under Jawahar Lal Nehru Urban Renewal Mission (JNURM),” the TRAI said in its recommendations on the national broadband plan submitted to the Department of Telecommunications.
The OFC network will be established for about R60,000 crore. It will be financed by the universal service obligation (USO) fund and loan given by the government.